Para 6.3.6 — MSO (Audit)
Original Rule Text
6.3.6 The following is the suggested periodicity and norms for audit of branches of public sector banks responsible for pension payments on behalf of Government :
<table><tr><td>A. Periodicity Number of Pensioners Catered to Periodicity 200 and above Annual 50 and above but less than 200 Biennial 50 and below Triennial</td></tr></table>
Note: Audit of Link Branches is, however, to be undertaken annually. In branches that are audited biennially and triennially, vouchers of two months and three months respectively are to be checked during local audit. B. Norms
<table><tr><td>Number of Pensioners Number of Party Days
(a) Paying Branches Nil Up to 25 Between 26 and 100 1 Between 101 and 200 2 Above 200 but less than 400 3 An extra day for every additional 100 or less cases 400 and above
(b) Link Branches 2 to 3</td></tr></table>
Note: Audit of branches dealing with 25 pensioners or less should not, however. be ignored altogether but should be clubbed with other visits.
- Communication of the Results of Audit
What This Means
This rule prescribes how often and for how long public sector bank branches handling pension payments should be audited. Branches with 200+ pensioners are audited annually, 50-199 biennially, and under 50 triennially. Link branches are always audited annually. The number of audit party days depends on the number of pensioners — from zero days for very small branches (clubbed with other visits) up to several days for large branches, with an extra day for every additional 100 pensioners above 400.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1200+ pensioners: annual audit; 50-199: biennial; under 50: triennial
- 2Link branches are always audited annually regardless of pensioner count
- 3Party days scale with pensioner count: 1 day for 26-100, 2 for 101-200, 3 for 200-400
- 4Extra day for every additional 100 pensioners above 400
- 5Branches with 25 or fewer pensioners should be clubbed with other audit visits
Practical Example
A Link Branch of Union Bank serving 350 pensioners is scheduled for annual audit with 3 party days. A smaller branch of the same bank with only 30 pensioners is scheduled for triennial audit and will be inspected alongside the next scheduled visit to a nearby larger branch, saving a separate trip.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a Link Branch in this context?▼
Can branches with very few pensioners be skipped entirely?▼
How are party days calculated for very large branches?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.